Mainnet Update: Liquidation Grace Period Reduction and Minimum Stake Time Adjustment

February 5, 2024

Mainnet Update: Liquidation Grace Period Reduction and Minimum Stake Time Adjustment

We want to inform you about some key updates regarding our mainnet release of Horizon Protocol. These changes are aimed at fortifying the overall stability of our platform.

Liquidation Grace Period Reduction

As part of our ongoing commitment to strengthening Horizon Protocol, we have reduced the liquidation grace period from 72 hours to 12 hours. This modification allows us to reduce the issuance ratio, making it possible to mint more zAssets and thereby increase liquidity. This adjustment is designed to improve stability following the launch of the futures exchange.

Additionally, it encourages stakers to perform quicker risk management by actively managing their collateral ratio (C-Ratio) through the existing agile tools, which in turn promotes a more resilient platform.

Minimum Stake Time Adjustment:

In order to further stabilize liquidity and to discourage people from playing the system, we have introduced a minimum stake time of 7 days. During this period, stakers won’t be able to burn their entire stake, however, they can still utilize the existing tools to burn to the target C-Ratio or choose to self-liquidate if needed. This change prevents snapshotting rewards, ensuring a more reliable and consistent staking environment.

Target Liquidation C-Ratio Modification:

In addition to the above changes, we have also reduced the target liquidation collateral ratio (C-Ratio) from 200% to 160%.

Continuous Monitoring: As always, we will continuously monitor the effects of these changes. If necessary, we remain committed to making additional adjustments to ensure the best possible performance, stability, and user experience on the Horizon Protocol platform.

We believe these changes are necessary to contribute to the long-term sustainability of our platform and enhance the integrity of our staking mechanisms.

We appreciate your understanding as we work to refine and optimize our mainnet features. If you have any questions or concerns regarding these updates, please don’t hesitate to reach out to us through our official channels listed below.

Horizon Protocol is a DeFi platform that facilitates the on-chain trading of synthetic assets that represent the real economy. Horizon Protocol seeks to provide exposure to real-world assets risk/return profiles via smart contracts on the blockchain.

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